Value Streams from Distribution Grid Support Using Battery Energy - - PowerPoint PPT Presentation

Value Streams from Distribution Grid Support Using Battery Energy Storage

• Dr. Adarsh Nagarajan

Power System Design and Studies

September 24, 2018

https://www.nrel.gov/docs/fy18osti/71545.pdf

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Outline

• Where am I from?
• Storage Application in ISO
• Business model
• Value and application
• CAISO market for storage
• Distribution system benefits
• Select participation model
• Application

https://www.nrel.gov/docs/fy18osti/71545.pdf

3

Physical and Cyber Security

Solutions Interconnection Power Electronic s Characterization Interoperability Solar EVs Wind Loads Energy Storage Integrated Devices and Systems Operations & Controls Operations & Controls Reliability and Markets Grid Sensors Resource Measurements Sensing, Measurements, and Forecasting Forecasting Design & Studies Design & Studies

Institutional Support

NREL – Power Systems Research

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Storage Application in ISO

market market

Distribution deferral Transmission deferral Energy aribitrage Spin/Non-spin reserve Backup power Frequency regulation Reactive power support Active power support PV smoothing Power generation Power transmission Distribution system Transmission congestion relief Black start

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Utilization of energy storage systems

Peak shaving Energy arbitrage Peak shaving/volt-var Capacity firming NGR*/PDR*/RDRR* Day-ahead/Capacity firming Reactive power support Day-ahead/real-time market Volt-var/NGR*

Distribution feeder support Energy markets Stacking services

NGR: Non-Generator Resource PDR: Proxy Demand Resource RDRR: Reliability Demand Response Resource

Device upgrade deferral LTC/voltage regulator O&M deferral Voltage support device deferral

NREL | 6

Distribution feeder choice and battery chemistry

S

2MW/4 hour Redox Flow Battery system 3MVA inverter capacity 6MW peak load and 3MW PV generation Day-ahead dispatch

Step 1 – Model distribution feeder Step 2– Characterize battery chemistry

NREL | 7

Dynamic Battery Model – Composite Model

q

Built Composite Loss Model into OpenDSS

Total Losses= !"#$ + !&'()*'+, +!"+*+-.(./

NREL | 8

Capacity firming validation

Step 3 – Characterize inverter operation

NREL | 9

Peak shaving model validation

Step 3 – Characterize inverter operation

NREL | 10

Capacitor operation avoidance and deferral

0.95 1.00 1.05 Primary Voltages

Secondary Over Voltage(s) Secondary Under Voltage(s)

With capacitor With ESS performing Volt-var Existing capacitors can manage C591 until 2026 Energy storage performing volt-var can defer capacitor upgrade until 2031

NREL | 11

Value streams from distribution feeder support

Economic Parameters and Costs Assumption Analysis period 25 years Discount rate 6% General inflation 0.1% Electricity escalation rate 1.5% Annual load growth 3% Line upgrade cost $670,000 Transformer upgrade cost $1,497,000 New capacitor bank cost $56,054

Jenkins, John D. 2014. “Capital Workpapers to Prepared Direct Testimony of John D. Jenkins on Behalf of San Diego Gas & Electric Company.” November 2014. https://www.sdge.com/sites/default/files/SDGE-09-CWP_EDIST.pdf.

Step 4 – Value stream analysis

NREL | 12

Value Stream Monetization Mechanism Year 1 Savings Life-Cycle Savings

Peak shaving Transformer upgrade deferral – $121,135 Capacity firming Operation and maintenance savings from reduced LTC operations – – Voltage support New capacitor bank deferral – $7,463 Energy arbitrage Time-shifting energy purchases on the LMP market $56,069 $837,115 Total $965,713

Jenkins, John D. 2014. “Capital Workpapers to Prepared Direct Testimony of John D. Jenkins on Behalf of San Diego Gas & Electric Company.” November 2014. https://www.sdge.com/sites/default/files/SDGE-09-CWP_EDIST.pdf.

Value streams from local distribution grid support

NREL | 13

Field operation of Battery based on value maximization

Load forecasts Battery dispatch

www.nrel.gov

NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

Thank you

Adarsh Nagarajan

adarsh.nagarajan@nrel.gov https://www.nrel.gov/docs/fy18osti/71545.pdf